I need help with 8-17 please
Use the following to answer questions 8 - 10 (Round answers to the nearest dollar) BZ Corp issues 6.5%, 10-year bonds with a total face amount of $500,000. The market interest rate for bonds of similar risk and maturity is 6.5%. Interest is paid semiannually. 8. $ What is the issue price of the bond? 9. $ When the company records the 2nd interest payment, how much will the company record for interest expense? 10. $ What is the bond liability (carrying amount) after the 2nd interest payment? Use the following to answer questions 11 - 15 JR issues 5.50%, 20-year bonds with a face amount of $1,000,000 for $1,006,000.06. The market interest rate for bonds of similar risk and maturity is 5.45%. Interest is paid annually. Determine the interest 11. $ payment 12. $ (rounded to nearest dollar). Determine interest expense for the first interest payment. 13. What will happen to interest expense each interest payment? (Increase, decrease, remain constant) Determine interest expense for the first interest payment 13. What will happen to interest expense each interest payment? (Increase, decrease, remain constant) 14. What will happen to the bond liability (carrying value) each interest payment? (Increase, decrease, remain constant). 15. $ How much will the company pay out when the bonds mature in 20 years (assume all interest payments have already been paid)? 16. $ (rounded to nearest dollar) A ten year bond issue with a face amount of $100,000 bears interest at the rate of 7.1%. The current market rate of interest is 7.0%. Determine the issue price of this annual bond. 17. Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct? Both bonds will sell for the same amount. b. Bond X will sell for more than Bond Y. Bond Y will sell for more than Bond X. d. Both bonds will sell at a premium. a. c